Cryptocurrency and blockchain have seen a high rise in recent years, creating unrealistic expectations among the general public. Newbies often think of crypto as a win-win world, which is not true; fraudsters and cybercriminals have been taking advantage of this misguided perception through fake investment schemes, rug pull scams, and different play-to-earn models. In response to complaints, the Philippine Cyber Security Department of National Police recently issued a warning about Axie Infinity’s play-to-earn model.
Why do Officials Consider Axie Infinity Risky?
To understand why Axie Infinity is considered risky, let’s look at its working model. Players can battle against human or AI opponents, breed their favorite Axies to create offspring with desirable characteristics, buy virtual lands, and exchange assets like Axies and land parcels on the in-game marketplace – all for the exchange of two tokens, SLP (Small Love Potion) and AXS (Axie Infinity Shards), or cryptocurrency. Scams may involve manipulating players into using their tokens or cryptocurrency for promised high rewards that never materialize. This is why the Philippines’ Cyber Security officials are asking users to be cautious.
Through the Mindset of a Scammer
To avoid getting scammed, it’s important to understand the scammer’s mindset. Fraudsters play with the trust of their victims, claiming to be experts and presenting success stories. They may also mirror their victims’ tone and act extremely friendly, gaslighting them into believing the entire marketplace is secure. Additionally, they may create a pressured and urgent environment to force the victim to make quick decisions. Other tactics may include using complex jargon and technical concepts to confuse the victim, offering pyramid rewards, and exploiting lack of knowledge.
How to be on the Safe Side?
To stay safe, educate yourself on the game’s workings, start small, and never use third-party resources. Additionally, take security seriously, use secure wallets, limit personal exposure, be skeptical of offers, and trust your gut instinct. As Andreas M. Antonopoulos said: “In the cryptocurrency space, it’s not uncommon for a project that seems promising to suddenly turn into a disaster”. Be aware of red flags and invest wisely, and you’ll never regret it.
